Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Weekly Comic: Potential ‘Perfect Storm’ Brewing Amid China, Turkey Turmoil

Published 08/16/2018, 09:56 AM
Updated 08/16/2018, 09:56 AM

Investing.com - Jitters over a deepening currency crisis in Turkey combined with ongoing trade tension between China and the United States kept global financial markets on their toes this week.

The Turkish lira dropped to an all-time low of 7.1289 on Monday amid growing concern over a deepening diplomatic rift with the U.S. over Ankara's detention of an American pastor, whom Turkish authorities accuse of supporting a failed coup attempt in 2016.

While the lira has since pulled back from record low levels - finding support following reports on Wednesday that Qatar would invest $15 billion in Turkey - fear of full-blown crisis is far from over amid worries about President Tayyip Erdogan's growing influence over the economy, and his reluctance to raise interest rates despite rising inflation.

The lira is down almost 18% since the start of August. For 2018, it has lost approximately 50%.

Meanwhile, market focus stayed attuned to developments surrounding the brewing trade war between the U.S. and China.

China's Ministry of Commerce said on Thursday that it had received an invitation from the U.S. for talks to be held with U.S. Under Secretary of Treasury for International Affairs David Malpass.

The announcement by the Chinese commerce ministry of the planned meeting in late August comes after a lull in talks between the two sides.

The last official round of talks was in early June when U.S. Commerce Secretary Wilbur Ross met Chinese Vice Premier Liu He in Beijing.

Despite the positive developments Thursday, analysts remain cautious about the outlook for global financial markets, particularly those outside of the U.S. that have looked vulnerable whenever investors get nervous.

To see more of Investing.com’s weekly comics, visit: http://www.investing.com/analysis/comics

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.